Empirical Study on the Effect of Corporate Governance on Accounting Conservatism in Companies Listed on the Stock Exchange of Thailand
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Abstract
The objective of this research was to examine the effect of corporate governance on accounting conservatism in listed companies in Thailand. This study concentrated on the major characteristics as specified in the Corporate Governance Code for Listed Companies 2017: board structure, board activity, compensation, shareholder structure, and audit committee. Empirical research samples were listed companies on the Stock Exchange of Thailand from 2018 to 2019, excluding listed companies in the process of rehabilitation and companies in the financial institution sector. Thus, there were 906 firms-year observations in total. The data were analyzed by means of Multiple Linear Regression at a significance level of .05. The results revealed that board activity, compensation, shareholder structure, and audit committee had a positive and significant effect on accounting conservatism. However, board structure had no significant influence on accounting conservatism.
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